Stock prices plunged on U.S. and European exchanges Thursday, as the DAX index in Germany fell almost 7 percent and the U.S. benchmark Dow index was off more than 4 percent.

The sell-off followed reports showing inflation and layoffs rose in the United States recently. Investors may have also been disappointed by a fall in Japanese exports and British retail sales.

This new data added to worries about global economic growth already sparked by the European debt crisis.

Another reflection of investor concern is shown by the price of gold which hit new record highs. Gold is traditionally seen as a safe haven for investor's money in troubled times.